Delta declines CARES act Money
 

So, according to Deltanet, Delta secured 6.5 Billion $$$$ by using our Skymiles card/program as collateral. Our cash burn is about 27 Million /day. They declined to take the CARES money.

Thoughts?

If already discussed somewhere else,my apologies. Seems worthy of a little discussion .:D
Prolly a difference in the secured loan program?

Yep. Those loans placed limits on
-stock buybacks
-dividends
-and executive compensation
But I’m sure none of the above influenced the decision to turn down the loan.

Unfortunately most of this discussion will probably belong on the politics thread. Agree it’s an important topic for our careers though.

Maybe they’re posturing for cares2. Maybe the company thinks the worst is over and liquidation isn’t a threat.

Agreed. Delta doesn't want them in their(our) stuff. Wasn't there 2 diff buckets of money ...loans and grants? Mr google is not being my friend here ....can't seem to find it.

The no furlough edict was tied to what?

Anyone?

Every airline took the grants, which included the no furlough guarantee. To my knowledge Delta, and maybe Southwest are the only airlines that haven't also taken the loans. The loans come with strings attached as far as stock buybacks, dividends, and executive compensation.

Where is the politics in this?

I am asking for factual info. Not trying to inject any politics here.

Can you shed any light on this CARES money....factually speaking of course?


Darn that 240!!


edit.....Thanks Tennis...yea couln't quite remember the deets

hard to argue for cares 2 when you aren't willing to take the loans from cares 1

no furloughs were tied to grants, loans had stock purchasing/dividend/exec comp implications.

The first part prevented furloughs. It was advertised as a grant but 30% was a loan requiring an equity guarantee. The second part is the loan which a decision must be made by the end of September and it comes with more equity to secure and all the mentioned strings.

The government also wants ownership via stock if you take the loans. They are not a good deal if you have other access to capital.

Didn't it also include seat(s) on the board of directors also? I like the provisions of what you stated earlier, but I don't think it is my best interest as an employee to let the government have a say on running a business (JMHO)



THX for the replies....this 240 is making this a little cumbersome My apologies...losing a little in the 240 lockout